SEC Should Clarify ICO Regulations – U.S.
October 1, 2018 1:13 pm
A team of U.S lawmakers have approached the Securities and Exchange Commission (SEC) chairman Jay Clayton to seek clarification on ICO regulations. The chairman was asked to confirm when the SEC will consider ICOs as securities sales.
Representatives Ted Budd, Warren Davidson, Tom Emmer, and Darren Soto, along with 11 co-signers approached the chairman with a letter. The letter stated that the current uncertainty surrounding ICO is hindering innovation in the U.S. and it can lead to driving business elsewhere.
The letter stated that the lawmakers believe that the SEC can clarify ICO status. The lawmakers are concerned about the use of enforcement actions alone to clarify policy. They would consider the formal guidance as an appropriate position to clear legal uncertainties which cause problems to the development of innovative technologies.
The letter also included that the lawmakers want to know whether token sales should be classified as “investment contracts” or not. They also asked that if a token which is sold as a security can later become a non-security. The SEC was also asked about tools available to offer more solid guidance to innovators. The letter did not reveal the information about the further and in-depth consideration.
Recently Davidson hosted a forum in Washington, D.C. The forum asked leaders in the cryptocurrency world to express any objections they had with regulations in the U.S. Many representatives from blockchain startups, cryptocurrency exchanges and venture capital funds highlighted the need for clarity around token sales.